Apple Playing 'Poker Game' With China Production Move, Wedbush's Ives Says

The transcript discusses Apple's production strategy amidst US-China trade tensions. It explores potential shifts of production from China to other Asian countries like India and Vietnam, considering the impact on costs and supply chain. The role of automation and robotics in future production is highlighted, with a focus on gradual changes over 5 to 10 years. The discussion also covers Apple's instructions to suppliers and the strategic implications of moving production out of China, emphasizing the importance of trade talks in determining Apple's next steps.

What percentage of Apple's production is potentially being considered for relocation out of China?

• 5 to 7%

• 20 to 25%

• 30 to 35%

• 10 to 15%

Which countries are mentioned as potential new locations for Apple's production?

• South Korea and Japan

• Germany and France

• Brazil and Mexico

• India and Vietnam

What is the main reason for Apple's hesitation to move production out of China?

• Lack of skilled labor

• High costs of relocation

• Established infrastructure and potential disruptions

• Unfavorable weather conditions

What is a potential long-term solution for Apple's production strategy mentioned in the transcript?

• Outsourcing to smaller companies

• Investing in automation and robotics

• Building new facilities in Europe

• Increasing manual labor

Why has Apple kept its production in China despite having a large cash reserve?

• Due to high-quality materials

• For better market access

• Because of cost advantages

• To maintain brand image

What is the potential impact of the US-China trade war on Apple's production strategy?

• It might force Apple to diversify production locations

• It could lead to increased production in China

• It will result in lower production costs

• It will have no impact on Apple's strategy

What is the main factor that could force Apple to move production out of China?

• A decline in product demand

• A negative turn in trade negotiations

• A shortage of raw materials

• A significant increase in labor costs